Oil Min write to PM; gives status report on gas price hike

The oil minister has written to the prime minister to give him a status report on gas price hike, reports CNBC-TV18 quoting sources. In the letter, the minister talks about going through proper process for fixing gas process—a decision that has taken two-years—based on the Rangarajan Committee proposals. The committee is likely to fix price set up by the previous oil minister Jaipal Reddy.  Sources say the report has not dealt with the NELP agreement of 1999 or production sharing contract. It says the discovery could have been commercially viable.

(Also Read: Oil subsidy falls short of Rs 42,200cr for Mar qtr: Moody's)Oil major ONGC does not feel USD 4.20 per unit for gas is not commercially viable. Meanwhile, sources also told CNBC-TV18 that the Home Ministry and Delhi Lieutenant Governor will decide on action with regard to Arvind Kejriwal FIR. They may move Supreme Court for quashing of FIRs. Kejriwal had ordered the FIR saying he had received complaints that the decision to almost double gas prices from April was taken to benefit RIL to the tune of Rs 54,000 crore.